Possible first Deal
I think i have found a property that seems like it would be a nice starting point in my investing career. Its a Duplex each unit has 2 bed 1 bath and is currently full rented at 500 a unit. which is at least 100 a month under current rent rate for comparable units. here are the numbers.
Cost 40K (But i'm hoping i can get for 35K been on market for 45 days now)
Monthly rent-1000 or 12,000 annually
Expenses yearly approx.
utilities- paid by tenants
Taxes: 2012 taxes was 400
Insurance: estimate 700
Vacancy (10%): 1200
Maintenance: (10%) 1200
Management (10%) 1200
Misc: 2,000
I wanted to see if this is a decent deal. Also i was told that banks will not give a loan on a house under a certain price. is this true? if a loan is possible i would put down 10% 4k and finance the difference 36k.